# Comfy Fit Company manufactures two types of university sweatshirts, the Swoop and the Rufus, with unit contribution

## Question:

Comfy Fit Company manufactures two types of university sweatshirts, the Swoop and the Rufus, with unit contribution margins of $5 and $15, respectively. Regardless of type, each sweatshirt must be fed through a stitching machine to affix the appropriate university logo. The firm leases seven machines that each provide 1,000 hours of machine time per year. Each Swoop sweatshirt requires 6 minutes of machine time, and each Rufus sweatshirt requires 30 minutes of machine time. There are no other constraints.

Required:

1. What is the contribution margin per hour of machine time for each type of sweatshirt?

2. What is the optimal mix of sweatshirts?

3. What is the total contribution margin earned for the optimal mix?

Contribution margin is an important element of cost volume profit analysis that managers carry out to assess the maximum number of units that are required to be at the breakeven point. Contribution margin is the profit before fixed cost and taxes...

## Step by Step Answer:

**Related Book For**

## Cornerstones of Managerial Accounting

**ISBN:** 978-0324660135

3rd Edition

**Authors:** Mowen, Hansen, Heitger